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Question 4 Since the emergence of I'C'OVIDISl pandemic, several economic recovery measures have been implemented in an economy. As a results, there is a drastic
Question 4 Since the emergence of I'C'OVIDISl pandemic, several economic recovery measures have been implemented in an economy. As a results, there is a drastic increase in the autonomous consumption. Based on the 3equation model diagrams with the banking markup consideration, describe the impact of this phenomenon on the economy and explain how the central bank responds to reach the equilibrium. [10 marks]
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